Underwriter wants more comps that have sold

[Dave Smith]

I am convinced that many UW requests for more or better comps is simply a power play. They like to jerk us around and show us who is boss.

My favorite LO and I have played a game with one of the UW's at his bank. When I am asked for an additional comp I will, with the LO's approval, provide a sale that is just barely a comp and worse than any of the original comps. Of course it would be worse. If it had been a better comp it would have been used in the first place. In the comments section I state that the poor comp was supplied at the specific request of the UW but that I am giving it no weight because it is the least meaningful of the comps provided.

Once the UW has the additional comp the deal is a go, no questions asked. No comments about how bad the comp is, that there have to be better ones or anything else. An additional comp establishes the power of the UW and we are all happy. The LO is documenting the instances in which this has happened and some day the UW is going to be facing the music.

Aint' this business fun?

'Nuf!

 

[Anonymous]

Having been a residential appraiser for about 15 years, and also manager of 'review' departments for appraisal management companies, I know a little about the 'myopia' that tends to set in after reviewing thousands of appraisal reports.

I currently manage a staff of 10 underwriters/reviewers.

Many of the appraisers on this forum correctly state that underwriters typically do not have appraisal backgrounds. So naturally, the underwriters view the appraisal report from an entirely different perspective. In the best situations, the underwriter will try to follow along with FannieMae guidelines, but unfortunately in some situations the underwriter was trained by another underwriter, who was trained by another underwriter and so on.... and even FannieMae guidelines have been misunderstood over the course of this process.

For example, some underwriters require all sketches to have interior walls, while FannieMae only requires this when the floor plan is obsolete. Or even worse, an underwriter may request an additional comparable when a comparable sale date exceeds 6 months, or 15% net or 25% gross adjustments, when Fannie Mae only requires comments to be provided by the appraiser when these things happen. Often times the underwriter will justify requests for comments, comparables, corrections based upon FannieMae guidelines, but actually only have a vague glimmer of what FannieMae guidelines actually state, and will vehemently review reports based on thier own distorted ideas about what Fannie Mae requires.

Often, the best way to reconcile questions from underwriters is to have a good understanding of the guidelines that they are using, especially FannieMae guidelines. Appraisers should explicitly ask new clients if they have any supplemental guidelines, and it would be a good idea to include space on your appraisal order forms for the client to state any supplemental guidelines when the appraisal is ordered.

Unfortunately, some outfits may not have clearly defined underwriting guidelines, so the 'rules' may change from one underwriter to the next, and from one day to the other. This of course is as exasperating to the appraiser as it is for the underwriters to request the same comments and corrections from appraisers, day after day, year after year, ie: correct borrower or lender name, comment on well & septic, comment on sales over 6 months, comment on adjustments over 15%/25%, reconcile the market approach, provide loan number on the report... etc, etc,

 

[Larry Lyke]

Blue1 --

Give me a hand and explain this to me from your above post:

"......I always try to include a recent listing (comp 4) in most of my appraisals nowadays to indicate what the current, active Market is like. This is important in a rising Market where existing inventory is limited."

Signed --
Somewhat Slow

 

[Leon Stewart]

Joe:

In my case over the years I've never considered it an option to make entries in a report that was not considered acceptable based on the request and/or related ethics. In this business a failure to prepare or submit the type of Report desired by the Lender will prevent you from getting assignments in the future. Currently that's how the system is set up.

leart3